I Wonder Why This Number Is Rising So...
Politics0 min ago
An Advantage Of Brexit?
The EU limited the level of bankers bonuses to no more than twice their annual salary. There's talk of abolishing that limit.
As we sit considering our Winter fuel bills isn't it good to know the shackles imposed by an unelected foreign bureaucracy are being cast off.
As we sit considering our Winter fuel bills isn't it good to know the shackles imposed by an unelected foreign bureaucracy are being cast off.
Answers
> It is not the business of public authorities to interfere with what companies in the private sector do within their comp policy. Except when it follows those authorities royally bailing out those companies because they were "too big to fail", when the very reason they were in danger of failing was their executives chasing uncapped bonuses without...
12:51 Thu 15th Sep 2022
> It is not the business of public authorities to interfere with what companies in the private sector do within their comp policy.
Except when it follows those authorities royally bailing out those companies because they were "too big to fail", when the very reason they were in danger of failing was their executives chasing uncapped bonuses without considering the downside.
I don't object to uncapped bonues. I do wonder, though, why it's top of Kwasi Kwarteng's list as he becomes chancellor. And I do object to unlimited upside with a safety net on the downside.
Except when it follows those authorities royally bailing out those companies because they were "too big to fail", when the very reason they were in danger of failing was their executives chasing uncapped bonuses without considering the downside.
I don't object to uncapped bonues. I do wonder, though, why it's top of Kwasi Kwarteng's list as he becomes chancellor. And I do object to unlimited upside with a safety net on the downside.
The EU banker bonus cap was brought in, in an attempt to prevent/minimise the type of risks the banks exposed themselves to, that led to the 2008 financial crisis.
That 2008 financial crisis has been estimated to have cost governments around the world the order of $500 Billion. The UK tax-payer can look forward to paying for another bail-out of our bankers, thanks to Brexit.
That 2008 financial crisis has been estimated to have cost governments around the world the order of $500 Billion. The UK tax-payer can look forward to paying for another bail-out of our bankers, thanks to Brexit.
The bonuses were indeed peanuts compared to the amount of money lost by the banks – but the bonus structure encouraged the bankers to make huge financial risks that exposed the banks to financial ruin.
The upside for the bankers was that if the risks paid off they would get a handsome bonus, if not, the bank might go bust.
The upside for the bankers was that if the risks paid off they would get a handsome bonus, if not, the bank might go bust.
"but the bonus structure encouraged the bankers to make huge financial risks that exposed the banks to financial ruin. " - err no, try again, it was caused by brokers knocking out subprime mortgages that were then packaged up into CDO's then mis rated as triple A by the credit ratings agencies. They were then involved in nested derivatives deals until the whole show collapsed. There are many reasons why that cannot happen again.
JDavis, // Don't think logic's your strong point, naomi.//
No? What isn't 'logic' is the expectation of an equal lifestyle for doing less. The people you and the OP are complaining about are those who generate the wealth of this country, and that's what provides the jobs for everyone else - including the lemon-suckers.
No? What isn't 'logic' is the expectation of an equal lifestyle for doing less. The people you and the OP are complaining about are those who generate the wealth of this country, and that's what provides the jobs for everyone else - including the lemon-suckers.
//They should partly be in a form that it is possible to be taken back if there are problems, such as bail-in debt.//
So would you apply that to anyone receiving a bonus or commission? If McVitties went belly all their salesmen should hand back their commission?
Or is it just the Bankers that you dont like, most likely because you dont understand how it works like others on this thread have clearly demonstrated.
So would you apply that to anyone receiving a bonus or commission? If McVitties went belly all their salesmen should hand back their commission?
Or is it just the Bankers that you dont like, most likely because you dont understand how it works like others on this thread have clearly demonstrated.
Hymie, you really need to look things up before posting such rubbish. If you bother to many things have been put in place in Banks to prevent issues. Of course it can never be 100% but its pretty tight now.
This has been driven by many Countries the UK is just one part (although along with the US the main driver)
This has been driven by many Countries the UK is just one part (although along with the US the main driver)
